French Fintech Startup Swan Raises €42 Million in Funding
French startup Swan has secured a new round of funding, raising €42 million (approximately $44 million USD). This funding round is considered the second part of the Series B round that was initially announced in September 2023.
Swan specializes in helping companies offer financial products at scale, providing both virtual and physical cards that are compatible with Apple Pay and Google Pay. These cards can be customized by Swan’s corporate clients, allowing them to set spending limits, authorized merchants, and more.
In addition to card services, Swan also offers payment accounts with individual IBANs, supporting pay-ins, pay-outs, and SEPA direct debits. These accounts can serve as the funding source for the payment cards.
The startup has gained traction with fast-growing companies like Pennylane, a French accounting startup turned unicorn, which now offers accounts and payment cards to its customers through Swan. Similarly, Indy, an administrative assistant for freelancers, has integrated Swan’s accounts and cards into its platform. Other notable customers include Agicap, Factorial, Lucca, and Sesame.
Currently, Swan works with 150 companies and processes €1.5 billion in monthly transactions. The second tranche of funding is led by Eight Road Ventures, with existing investors Lakestar, Accel, Creandum, Hexa, and Bpifrance also participating.
According to Eight Roads Ventures partner Lucile Cornet, the embedded finance opportunity is significant, and Swan’s progress, customer base, and international expansion have been impressive. While the company’s valuation remains undisclosed, CEO Nicolas Benady mentioned that it has increased since the last funding round.
Unlike many fintech startups that rely on existing APIs, Swan has developed its core banking system, enabling it to offer local IBANs and country-specific payment products. This approach allows Swan to handle compliance and KYC obligations for its customers.
With the latest funding, Swan plans to expand its services to more countries, with Italy being the next target on its roadmap.
